Key Highlights

● More than two dozen retailers and brands are exploring, piloting or deploying gift card security.

● Schnucks completed a storewide rollout across 112 stores with over 90,000 protected cards.

● Digimarc announced a registered direct offering for about $18.2 million of gross proceeds.

● Second-quarter revenue was $7.39 million with a net loss of $12.11 million.

Gift card security update

Digimarc Corporation (NASDAQ:DMRC) said in an announcement on 7 October 2026 that more than two dozen major retailers and brands are exploring, piloting or deploying its gift card security solution. The technology uses digital identification and authentication at checkout to detect tampered cards and block their activation, and the company says it works with existing point-of-sale scanners without changing the customer experience.

The phrase "more than two dozen" combines retailers that are exploring, piloting and deploying, so the release does not separate paying deployments from trials, and it quantified no revenue from the programme. Protected cards cover brands in open-loop bank cards, luxury department stores and home improvement.

The Schnucks deployment

The release highlighted St. Louis grocer Schnucks, which completed a storewide rollout across 112 stores. More than 90,000 protected cards are on shelves or have been sold. Digimarc reported zero fraud on cards sold and a 100 per cent successful activation rate, and a Schnucks compliance officer described the result as three times more secure than package-level security.

The rollout involved security updates to Zebra Technologies (NASDAQ:ZBRA) and Honeywell (NASDAQ:HON) scanners. Chief executive Paul Carreiro said the company focused on the activation step.

Capital raising

On 30 September 2026 Digimarc announced a registered direct offering of common stock for approximately $18.2 million of gross proceeds, with Needham & Company acting as sole placement agent and closing expected on or about that day, subject to customary conditions. The announcement did not disclose the number of shares or the price per share, and the company said it would use net proceeds for general corporate purposes.

Raising equity increases the share count and can dilute existing holders, so the transaction is relevant when assessing per-share outcomes.

Losses, cash and the offering

Digimarc recorded revenue of $7.39 million and a net loss of $12.11 million, or $0.54 per share, for the quarter ended 30 June 2026. That compares with revenue of $7.58 million and a loss of $6.97 million in the March quarter. Cash and investments were $8.76 million at 30 June, against total debt of $4.78 million, leaving net cash of $3.98 million, or about $0.18 per share.

Trailing twelve-month revenue is $31.5 million, down 11.2 per cent. Over the four quarters to June 2026, quarterly revenue ranged from $7.39 million to $8.91 million, and the company recorded a net loss in each period, with losses of $4.21 million to $12.11 million. Net cash fell from $7.65 million at December 2025 to $3.98 million at June 2026.

The June cash balance predates the offering, so it does not include the roughly $18.2 million of gross proceeds raised in September.